Justice Department Approves United/Continental Merger

Posted: August 31st, 2010

On Friday the Washington Post reported the U.S. Justice Department has given final approval for United Airlines and Continental Airlines to merge, stating the department is convinced the two airlines did not have so much overlap in their routes that consumers would be harmed by higher prices and limited flight choices. The deal, first announced in May, is worth $3.17 billion would create the world’s largest airline. This merger follows on the footsteps of the Delta-Northwest merger, and would leave just four traditional carriers in the United States, possibly three if American Airlines responds by bidding for US Airways, as some analysts predict. The companies' shareholders still have to vote on the proposed merger in separate meetings set for next month before the deal is finalized. The new airline, which would use United's name and Continental’s logo, is expected to carry about 144 million passengers to 370 destinations in 59 countries, to the tune of about $30 billion in revenue a year.

Source: United Airlines, Washington Post